Hon Hai Precision Industry Co., Ltd. Sponsored GDR (OTCMKTS:HNHPF) vs. Garmin (NYSE:GRMN) Financial Contrast

Hon Hai Precision Industry Co., Ltd. Sponsored GDR (OTCMKTS:HNHPF) and Garmin (NYSE:GRMN) are both large-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, profitability, institutional ownership, dividends, analyst recommendations and valuation.

Institutional & Insider Ownership

81.6% of Garmin shares are owned by institutional investors. 15.4% of Garmin shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Hon Hai Precision Industry Co., Ltd. Sponsored GDR and Garmin’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hon Hai Precision Industry Co., Ltd. Sponsored GDR	N/A	N/A	N/A
Garmin	23.26%	20.07%	16.34%

Dividends

Hon Hai Precision Industry Co., Ltd. Sponsored GDR pays an annual dividend of $0.28 per share and has a dividend yield of 1.8%. Garmin pays an annual dividend of $4.20 per share and has a dividend yield of 1.9%. Garmin pays out 46.8% of its earnings in the form of a dividend. Garmin has raised its dividend for 8 consecutive years. Garmin is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of recent recommendations for Hon Hai Precision Industry Co., Ltd. Sponsored GDR and Garmin, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hon Hai Precision Industry Co., Ltd. Sponsored GDR	0	0	1	0	3.00
Garmin	0	4	2	1	2.57

Garmin has a consensus price target of $268.40, suggesting a potential upside of 18.74%. Given Garmin’s higher probable upside, analysts plainly believe Garmin is more favorable than Hon Hai Precision Industry Co., Ltd. Sponsored GDR.

Risk & Volatility

Hon Hai Precision Industry Co., Ltd. Sponsored GDR has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, Garmin has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500.

Earnings and Valuation

This table compares Hon Hai Precision Industry Co., Ltd. Sponsored GDR and Garmin”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hon Hai Precision Industry Co., Ltd. Sponsored GDR	$213.33 billion	0.50	$4.75 billion	N/A	N/A
Garmin	$7.46 billion	5.84	$1.66 billion	$8.97	25.20

Hon Hai Precision Industry Co., Ltd. Sponsored GDR has higher revenue and earnings than Garmin.

Summary

Garmin beats Hon Hai Precision Industry Co., Ltd. Sponsored GDR on 11 of the 16 factors compared between the two stocks.

About Hon Hai Precision Industry Co., Ltd. Sponsored GDR

Hon Hai Precision Industry Co., Ltd. provides electronic OEM services. The company offers consumer electronics comprising of television sets, game consoles, set-top boxes, and speakers. It also provides cloud networking products consisting of routers, servers, edge computing, data centers, and satellite communications and other related equipment. In addition, the company offers desktop computers, notebook computers, tablets, business machines, printers, etc. Further, it provides connectors, precision optical components, lenses, electronic components, semiconductor products, automotive electronic parts, cutting tools/mold fixtures, and mechanical equipment. The company operates in Taiwan, Mainland China, India, Japan, Vietnam, Malaysia, Singapore, the Czech Republic, Hungary, Slovakia, the United States, Brazil, and Mexico. Hon Hai Precision Industry Co., Ltd. was founded in 1974 and is headquartered in New Taipei City, Taiwan.

About Garmin

Garmin Ltd. designs, develops, manufactures, markets, and distributes a range of wireless devices worldwide. Its Fitness segment offers running and multi-sport watches; cycling products; smartwatch devices; scales and monitors; and fitness accessories. This segment also provides Garmin Connect and Garmin Connect Mobile, which are web and mobile platforms where users can track and analyze their fitness, activities and workouts, and wellness data; and Connect IQ, an application development platform. The company's Outdoor segment offers adventure watches, outdoor handhelds and satellite communicators, golf devices, consumer automotive devices, and dog devices, as well as InReach and Gramin response communication device. Its Aviation segment designs, manufactures, and markets various aircraft avionics solutions, including integrated flight decks, electronic flight displays and instrumentation, navigation and communication products, automatic flight control systems and safety-enhancing technologies, audio control systems, engine indication systems, traffic awareness and avoidance solutions, ADS-B and transponders, weather information and avoidance solutions, datalink and connectivity solutions, and various services. The company's Marine segment provides chartplotters and multi-function displays, cartography products, fishfinders, sonar products, autopilot systems, radars, compliant instrument displays and sensors, VHF communication radios, handhelds and wearable devices, sailing products, audio products and accessories, digital switching products, and trolling motors. Its Auto segment offers embedded domain controllers and infotainment units; and software, map database, cameras, wearables, and automotive solutions. The company sells its products through independent retailers, dealers, distributors, installation and repair shops, and original equipment manufacturers, as well as online webshop. Garmin Ltd. was founded in 1989 and is based in Schaffhausen, Switzerland.